Yellow Corp. is shutting down, informing the Teamsters Union that it is filing for bankruptcy.
Yellow was founded nearly 100 years ago and employs some 30,000 workers. The company has experienced a number of setbacks of late, including legal wrangling with the Teamsters.
The company sued the union for more than $137 million in late June, claiming it was blocking the company from modernizing as part of its effort to compete with non-union companies. A judge in Kansas denied the company’s motion on jurisdictional grounds in late July. Although Yellow said it planned to continue its legal action, it has now informed the Teamsters that it is shutting down and pursuing bankruptcy.
“Today’s news is unfortunate but not surprising. Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government. This is a sad day for workers and the American freight industry,” said Teamsters General President Sean M. O’Brien.